Gratuity Calculator: Your Payout for Years of Service

Gratuity rewards long service with a lump sum when you leave. This calculator shows what you’re entitled to.

What is it?

Gratuity is paid by employers to staff who complete at least 5 years. It’s based on your last drawn salary and years of service.

How is it calculated?

Gratuity = (last salary × 15 × years of service) ÷ 26, where salary is basic plus dearness allowance.

Example

On a ₹50,000 last salary with 10 years of service, gratuity works out to about ₹2.88 lakh.

Key things to know

• You generally need 5 years of continuous service.
• Up to ₹20 lakh is tax-free.
• Service beyond 6 months in the final year rounds up.
• It’s a legal right under the Gratuity Act for covered employers.

What to do next

Confirm your gratuity at exit with your HR or payroll team.

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Frequently asked questions

When am I eligible?
After 5 years of continuous service (with some exceptions).

Is gratuity taxable?
Tax-free up to ₹20 lakh.

How are part-years counted?
Over 6 months rounds up to a full year.

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.